N.Y. Tax Law § 621: Credits to trust beneficiary receiving accumulation distribution

§ 621. Credits to trust beneficiary receiving accumulation

distribution. (a) General. A resident beneficiary of a trust whose New

York adjusted gross income includes all or part of an accumulation

distribution by such trust, as defined in section six hundred sixty-five

of the internal revenue code, including a beneficiary who is required to

make the modification required by paragraph forty of subsection (b) of

section six hundred twelve of this part, shall be allowed (1) a credit

against the tax otherwise due under this article for all or a

proportionate part of any tax paid by the trust under this article or

under former article sixteen of this chapter (as such article was in

effect on or before December thirtieth, nineteen hundred sixty), for any

preceding taxable year which would not have been payable if the trust

had in fact made distributions to its beneficiaries at the times and in

the amounts specified in section six hundred sixty-six of the internal

revenue code; and (2) a credit against the taxes imposed by this article

for the taxable year for any income tax imposed on the trust for the

taxable year or any prior taxable year by another state of the United

States, a political subdivision thereof, or the District of Columbia,

upon income both derived therefrom and subject to tax under this

article, provided that the amount of the credit shall not exceed the

percentage of the tax otherwise due under this article determined by

dividing the portion of the income that is both taxable to the trust in

such other jurisdiction and taxable to the beneficiary under this

article by the total amount of the beneficiary's New York income.

(b) Limitation. The credits under this section shall not reduce the

tax otherwise due from the beneficiary under this article to an amount

less than would have been due if the accumulation distribution or his

part thereof were excluded from his New York adjusted gross income.